Forex Today: US Dollar stays neutral as markets await Warsh’s first Fed decision
Here is what you need to know on Wednesday, June 17:
The US Dollar Index (DXY) trades with a weaker tone near the 99.50 level as investors prepare for the Federal Reserve’s (Fed) policy decision, the first under Kevin Warsh as Chair. The Fed is widely expected to hold interest rates unchanged, but markets will closely watch the updated statement, projections, and Warsh’s press conference for clues.
EUR/USD trades higher above the 1.1610 area as the Euro extends gains ahead of the Fed decision.
GBP/USD trades with a neutral tone near the 1.3430 region after briefly climbing above 1.3440 earlier in the day.
USD/JPY stays elevated around the 160.40 zone despite the Bank of Japan (BoJ) raising interest rates to 1.00% from 0.75%. The Yen failed to gain strong support as the BoJ maintained a gradual approach and signaled caution regarding bond market normalization.
AUD/USD trades muted near the 0.7070 after the Reserve Bank of Australia (RBA) held its cash rate at 4.35%. The RBA kept a hawkish bias and warned that further hikes remain possible if inflation stays elevated.
West Texas Intermediate (WTI) slumped over 4%, trading near $77.10 per barrel.
Gold holds firm above the $4,340 area as traders position ahead of the Fed decision. The precious metal remains supported by geopolitical uncertainty and expectations that Warsh’s first meeting could shape the next leg in US yields and the Greenback.
What’s next in the docket:
Wednesday, June 17:
- UK CPI (May)
- UK PPI (May)
- UK Retail Price Index (May)
- Eurozone HICP (May)
- US Fed Interest Rate Decision
- New Zealand GDP (Q1)
Thursday, June 18:
- Switzerland SNB Financial Stability Report
- UK Employment Data (Apr/May)
- Switzerland SNB Interest Rate Decision
- Germany Buba Monthly Report
- UK BoE Interest Rate Decision
- US Initial Jobless Claims
- US Philadelphia Fed Manufacturing Survey (Jun)
- New Zealand Westpac Consumer Survey (Q2)
- New Zealand Trade Balance (May)
- UK GfK Consumer Confidence (Jun)
- Japan National CPI (May)
- Japan BoJ Monetary Policy Meeting Minutes
Friday, June 19:
- Germany PPI (May)
- UK Retail Sales (May)
- Canada Retail Sales (Apr)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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